Whole Life Insurance Vs Universal Life Insurance

Now that you have decided that you want permanent life insurance, the next step is obviously to select the type that will be best for you. Hopefully, this article will help you make an informed choice about the most suitable permanent life insurance to buy.


This is the major difference between whole life and universal life insurance policy. With whole life insurance, your premium is fixed at a certain amount for as long as you live. As for universal life insurance, there is flexibility in the payment of your premium. You could modify your universal life insurance premiums by choosing to pay more or less than your actual premium amount. In some cases, you could even skip paying your premiums completely. However, doing this could reduce the value of your universal life insurance policy. We advise you to contact us or your insurance agent for more information.

Cash value

With a whole life insurance policy, your cash investment is guaranteed irrespective of what happens in the market or economy. In other words, your whole life insurance policy will never lose its cash value below a specific amount set by your life insurance company. Instead, expect your money to grow each year. In the case of universal life insurance, your cash value depends on the current interest or market rates. So, if the market performs well, you can expect a significant increase in the cash value of your universal life insurance policy. A bad performing market, on the other hand, will have a negative impact on your universal life insurance cash value.